CO129-549-9 Air Ministry- transfer of land for Officer's Mess at Kai Tak 6-6-1934 - 29-12-1934 — Page 4

4

A.

are set out in the first enclosures to the two

despatches. It appears from paragraph 4 of the despatches that the Air Ministry has accepted these terms (slightly modified in the case of the

area (a)) or such modified terms as may ultimately

be decided upon, and from (1) on this file that the

Treasury have approved of the purchase of the two

areas.

The Governor, however, suggests an alter-

native arrangement analagous with that which re-

gulates the provision of land required by the War

Department. Under such an arrangement, the Govern- ment of Hongkong would, through the medium of an

Air Ministry Lands Account, provide the two areas

free of all cost other than the actual cash dis-

bursement incurred by the Hongkong Government in

forming and resuming the land.

This alternative arrangement appears to

be unnecessary because both the Air Ministry and the Treasury have agreed to the original proposals; and undesirable (apart from the considerable finan-

cial loss to the Hongkong Government which it in- volves) because it would mean an admission that the duty of Colonial Governments to provide land

for military purposes free of charge extends to

the provision of lands for Air Force, and presumably for Naval, purposes as well. The Acceptance of

the alternative arrangement would be to create an undesirable and dangerous precedent.

Section 5 of the Defence Contribution

Ordinance